The United States border crossing is shown Wednesday, December 7, 2011 in Lacolle, Que., south of Montreal. Canada and the U.S will be signing a new treaty aimed at improving the flow of commerce. Prime Minister Stephen Harper is headed to the White House Wednesday to announce the details of a long-awaited border security agreement with U.S. President Barack Obama. The Beyond The Border initiative is intended to foster the sharing of intelligence and the streamlining of cross-border trade. (Ryan Remiorz/CP)

OTTAWA — The Canada Border Services Agency is not keeping a close enough eye on exports, causing high-risk shipments — including illegal drugs and stolen cars — to leave the country undetected, auditor general Michael Ferguson says.

In his latest series of reports examining the efficiencies and failings of various government departments, the federal watchdog finds the border agency is not reviewing all export declarations and not examining many shipments flagged by its own internal system — or by warnings from other departments.

Up to 20 per cent of high-risk exports identified by the agency’s centralized targeting units were allowed to pass without inspection.

Much of the breakdown relates to staff levels; in some locations, inspections cease entirely if a single staff member goes away on vacation.

“We also found that the agency did not always conduct targeting and examinations during all hours and days when export shipments move,” the audit said. “This meant that non-compliant shipments were exported undetected.”

The audit found that when the agency did detain shipments, it was holding on to legitimate goods far too long and — in some cases — costing businesses their contracts.

Also, Ferguson found that while goods valued under $2,000 do not require a permit, they can be subject to random inspection, but often are not because of a shortage of staff.

Small, undeclared parcels are a popular means for drug traffickers to get their illicit products out of the country, but according to Ferguson’s report, huntng for those shipments is not a priority under the current system.

“The agency had identified illegal drugs being exported out of Canada as a high-risk area; it made several drug seizures during the period of our audit,” said the report, tabled Tuesday in Parliament.

“But agency officials told us that the limits on their examination authorities reduced their effectiveness in preventing the export of illegal drugs. This limited authority, together with limited resources, resulted in the agency’s not setting export of illegal drugs as an examination priority.”

Ferguson said the agency receives a mish-mash of customs declarations and that the whole system should be electronic.

In 2014, the agency received data on about 787,500 electronic forms declarations submitted through the Canadian Automated Export Declaration (CAED) system — an outdated network that was due to be replaced years ago. Additionally, it received at least 44,000 paper declarations.

Exporters intend on evading the inspection system seem to know that all they have to do in order to slip past is to file the paperwork right at the deadline. Declarations must be submitted at least two hours before shipments are loaded on planes and at least 48 hours before loading onto ships.

“We were told that about one third of targets were not examined because the agency’s local office received information about the targets too late — that is, after the shipments had already left or been loaded on planes and ships,” said the audit.

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